Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

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To: Joss who wrote (3893)	12/8/1997 2:43:00 PM
From: Bill Wexler	of 27307

<<Isn't this rolling the dice in time?>> Yes - it is a gamble...and I didn't purchase that many. One of the signs that a momentum stock is reaching a "climax" is when: 1) Volume jumps dramatically over the course of a few hours or days. 2) Nervous short sellers scramble to cover whenever the bid drops slightly...causing the spread to widen. 3) The people cornering the stock (could be market makers, company insiders, institutions, etc.) start "bleeding" it...i.e. they'll buy small blocks, causing a jump in the bid if the short interest is high enough and the float is small enough. If a large enough wave of short selelrs then rush in to cover - they'll sell larger blocks. They may also sell deep in the money calls. 4) Inter market maker trading volume increases dramatically...attracting momentum suckers. I believe we have reached that point, so I bough a few puts. If I'm wrong - so be it; I'll simply continue to short more if it rises.

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